Finesse Your Financial Literacy Element Program Development Unit Youth Team 11/20/2019 Date To listen to the recording, go to https://dews.webex.com. On the right-hand side of the page at the top, click on “View session recordings.” Select the webinar name and “View” for the recording to begin. **When prompted, enter “Careers” for the password** To view polls in the presentation recording, if any. When the poll results are discussed, click on orange button on the top right to view the results in the poll box. Follow up resources can be viewed at this link: https://www.labor.ny.gov/youth/PDFs/financial-literacy- youth-webinar-resources.pdf 1
Financial Literacy Education: • What is it? • Why do youth need it? • What are some strategies you can use to offer robust education? Date Good morning! I am Alyssa Gorevich with the Youth Team in the Program Development Unit at the New York State Department of Labor. Today we will be talking about the Financial Literacy Education Element. We will learn what the element is and what types of education could be counted. We will then discuss why youth need financial lit education and how it can impact their lives. Finally, we will offer some strategies for a broad spectrum of educational solutions so you will have options to tailor your education to your youth’s age or specific needs. 2
Today’s Guest Speakers Jennifer Mitchell Penny J. Seeger Alan Sessions Chenango Delaware Otsego Local Area Date With me today are three speakers from the Chenango‐Delaware‐Otsego area. Jennifer Mitchell, Penny Seeger, and Alan Sessions will share some of the strategies they employ in their local area. Welcome! 3
Activities that help a youth grow the knowledge and skills needed to… • gain • make now and in the future! Date Great, let’s get started. What is Financial Literacy Education? It is training or education aimed at improving skills and understanding of fiscal matters. Gaining knowledge of how to manage money and why you should can help individuals gain confidence and make informed financial choices today and throughout their lifetime. WIOA has made Financial Literacy Education one of the 14 Youth Elements because young people particularly need this training whether it be because their circumstances have kept them from learning these necessary skills or simply because they are embarking on the early parts of their life journey. 4
Some examples from TEGL 21-16 about budgeting checking and savings accounts at banks spending, credit and debt about credit reports and scores about identity theft English-Language Learners particular needs of youth with disabilities how to understand, evaluate and compare financial products, services opportunities Date WIOA allows us to provide Financial Literacy Education to all youth in the WIOA Youth Program and the Element must be made available to all youth based on their needs. But what is allowed to be considered as the Financial Literacy Education Element? Any activity that provides youth with the understanding of managing money. Page 20 of TEGL 21‐16 offers a list of options that can be counted as Financial Literacy Education. Some of the things that the TEGL suggests are teaching budgeting, helping a youth open a checking or savings account or communicating information about credit reports, identity theft and managing spending. Additionally, you may provide support to English‐Language learners and address the unique needs of young people with disabilities. These are all important ideas for providing Financial Literacy Education. Keep in mind though that this is a limited list. There are many ways to provide youth with this critical education. Whether it be one‐on‐one discussions with the youth, formal classroom education, or hands‐on training, there are many ways to assist youth with learning about fiscal responsibility. 5
Four elements of Security Security Control over your day‐ Capacity to absorb a to‐day, month‐to‐ financial shock financial month finances well-being Freedom Freedom Financial freedom to On track to meet your make choices to enjoy life financial goals Date Be creative! Develop robust strategies to help your youth understand how finances can give them security and freedom now and years from now. Use the four elements of financial well‐being to frame your discussions and education. 1. Control over your current day‐to‐day, month‐to‐month finance; 2. Financial freedom to make choices to enjoy life; 3. Capacity to absorb a financial shock in the future and 4. On track to meet your future financial goals These concepts and more are outlined in a report that was developed by the Consumer Financial Protection Bureau. We will share the link, https://files.consumerfinance.gov/f/201501_cfpb_digest_financial‐well‐being.pdf, in the chat and send it in the follow up after this webinar. Connecting how money smarts can impact their lives could encourage youth to become a partner in the process of learning financial literacy, rather than be a passive observer. Today, we are going to talk about strategies that Youth Programs can use to deliver financial literacy education programming. 6
Poll Question What percentage of your enrolled youth need Financial Literacy Education Element? A. 0% to 10% B. 10% to 25% C.25% to 50% D.50% to 75% E. 75% to 100% Date But first, we have a poll. We’d like to learn more about your local area. How many of your youth needed to be provided Financial Literacy Education in the past year? We will give a couple of minutes for you to answer the poll. [After poll response appeared:] That is so good to hear! It sounds like most of you are already doing great work on this element. 7
According to data entered in OSOS, only about 20 to 25% of youth are receiving the Financial Literacy Education Date All: In looking at reports of the elements that are entered into OSOS across the state, we find that only about 20‐25% of youth are receiving Financial Literacy Education in OSOS. As you have indicated a much higher percentage of youth that have received that element, I would recommend taking a look at your data entry. You may be using an incorrect service type or have another error that results in it appearing that you have not provided the Financial Literacy Education Element to many youth. You all do such important work, make sure you are getting credit for what you do. 8
Need Financial Literacy Education Date Financial Literacy Education is one of the 14 elements and must be made available as a youth’s need arises. Although not required, the Financial Literacy Education Element is a critical building block for the development of a youth’s total plan to self‐sufficiency. Many youth may seem to have much of the basics of financial knowledge down and it might be tempting to focus on other areas. However, this may be deceptive. The youth may not yet have a good money attitude or they may only be thinking of today, not planning for their financial future. These youth may need more advanced assistance. Of course there are many reasons why youth may need financial literacy education. In fact, we all can benefit from it in one area or another. However, there are a couple of things that specifically impact youth that may not quickly come to mind when thinking about financial education needs. 9
Young adults might already be dealing with bad credit Date For instance, many youth discover when they go out on their own for the first time that they already have bills placed in their name or using their identification number. This could be the result of identity theft. Or youth could find that parents, for various reasons, have used their identity to open accounts for utilities or other household needs. These may be current bills or ones that were previously defaulted. Either way, the bills could prohibit the youth from getting important services such as utilities or a cell phone account turned on, rent an apartment or other need. Whether the reason for the bills is fraud due to identity theft, or a guardian using their name, the youth will need assistance in untangling the issue so they can begin to have their own services turned on. 10
Buy Car Rent Apartment Get a cell phone Get Job Building good credit at a young age can help set a youth on the right path Date One of the best ways to begin getting those services, brings us to another critical need that youth have. They need to build good credit. Credit is used for much more than just loaning money. Good credit shows companies that the person is reliable. Individuals with good credit borrow only what they can afford to repay and pay their bills on time. An individual of any age will find that good credit can open the doors to many surprising things. For instance, getting services such as utilities or a phone requires good credit. Obtaining a job and renting an apartment can also require good credit. Of course all people need good credit. However, young people especially need education about credit and debt management. For one thing, building good credit is much easier than fixing bad credit once poor decisions have been made. For another, youth are often offered credit before they understand how to manage it; frequently when they don’t even have a job to pay for the credit. Whether a youth is untangling fraudulent bad credit or starting from having no credit, it is important for them to begin building a good credit score when they are first starting out. We are going to cover this more later in the webinar. 11
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